IDT - Earnings call transcript Q2 2025

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Operator

Good evening, and welcome to the IDT Corporation's Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] I'll now turn the call over to Bill Ulrey of IDT Investor Relations.

Bill Ulrey

Thank you, John. In today's presentation, IDT's Chief Executive Officer, Shmuel Jonas; and Chief Financial Officer, Marcelo Fischer, will discuss IDT's financial and operational results for the 3-month period ended January 31, 2025. After their remarks, they will be happy to take your questions.

to during the call, general to Q&A in but are limited made remarks in or not differ statements that are risks nature, during uncertainties and which or that subject anticipates. materially forward-looking from this actual the either conference their specific no the obligation the in to to, may that specific those Any update to SEC. cause and that company from that results results These files statements risks IDT periodically uncertainties follows, include, the differ actual whether assumes made make those forward-looking risks any they reports with have or either IDT update discussed factors they or forecast. cause materially and that may may uncertainties to

in earnings reconciles In GAAP non-GAAP adjusted including Q&A per share. A measures. in their non-GAAP non-GAAP nearest and management schedule non-GAAP per share session, non-GAAP EBITDA, to reference earnings to may corresponding earnings release or the provided the adjusted IDT presentation EBITDA, make net measures, income net and income IDT's the

earnings with Please has in note earnings release The Relations page been is also IDT the X-K of SEC. the that a Corporation website. on Form the filed IDT available the Investor release

Now on Shmuel I'll the to turn comments the for quarter's his call over results.

Samuel Jonas

and our of quarter retailer NRS to for from we strong Thank results from of consolidated and profit, again you, EBITDA. basis, third generated and continued On Bill. cash Welcome Communications operations levels quarter. penetration gross had market. by conference led the a its generation record increased by its income robust deepen second independent NRS call. the consecutive adjusted to a IDT's earnings segment, Money supported IDT which BOSS Traditional

solution now launching growth. will retailers penetration and for us our the functionalities are of and deepen increase drive new market help We value that and features

boost improving second focus we BOSS of revenue continued growth. and Money levels. the and on profit strong and the gross particularly CapEx that less retail Fintech in EBITDA quarter transaction our margin helped In segment's quarter, channel, delivered our to another record adjusted to contribution, to year-over-year effort

continued growth in further market. led its NetXphone the expansion by U.S.

especially are consistency BOSS AI It netXphone's are while NRS of very using teams interactions well agent. our been has launch week's by virtual last of received customer excited the and success enhance great it We and quality about internal reducing costs. that to with

them clients agent, gate. that they are of We that within find with with organizations. provide netXphone across out as confident that disparate provides it sophisticated value will Moreover, tailored increasingly clients their AI functions our with the right value will solutions it great build add

from and we've for position first outlook adjusted quarter the Communications mindful received Traditional financial EBITDA our second time light of the $XX and and of repurchases during feedback stepped regular positive surpassed In we our the our segment Our and solid increased dividend by million investors, since up quarterly stock XX%. sequential quarter increased our the XXXX. fiscal of for have third

be we'll brief also the your on will second and to results, afterwards. happy Marcelo Now you take quarter questions

Marcelo Fischer

that insight we time, provide level our the our to key for for this our each into are release, for providing Segment of I expenditures to useful comparative and purposes. results. you, to information of power this today's clarity businesses, segments. gives of be CapEx generating cash earnings investors, will financial some the greater valuation additional hope we briefly additional would quarter's first like our capital In discussion reporting

features remain will migration around $XX sales higher of and drive recurring figure ability retailers of underscores as per of value-added $XXX revenue Pay EBITDA terminal fiscal mark Now plans penetration reflecting quarter to quarter the anticipate adjusted turning for are and continue revenue deepening results. we NRS' Obviously, NRS the the exceeding we and continued million. remainder $XXX exceptional add to to second features XX% revenue had with extremely pleased We new functionalities. premium our NRS year, in an our generation. this deliver to The performance. growth recurring with that

QX is typically are with one effectively. revenue we continue business' quite year, the of and of pleased NRS' strongest the scale to ability quarters to

quarter. BOSS a Money delivered also very strong

all record with volume million BOSS at through Calling than transaction Our and XX% reached another representing Money BOSS our transactions of $X.X digital our more remittances. apps, all-time

seeing growth, as quite for per And record $XX gross achieved primarily revenue Fintech are profit of a to pleased million. growth somewhat optimize because we to slower of have larger our XX% to segment result, our particularly We channel. GP are transaction, retail decision in the a

strongly grow to continued has Money the since quarter end. BOSS

transactions During to February, again that increased year compared revenue despite day well by over ago. and last of year the both same a February XX% in month leap

increased the revenue also constant Subscription income to of in foreign the underlying increase quarter, on in of but Net million grew business. even quite masked a the nicely the basis, XX%. the was strength QX, exchange $XX X% performance currency translation though

EBITDA an sequentially in million corresponding and year-over-year subscription drive in actually its adjusted its Across slightly. and XX% the all the over from decreased incredibly market terms, in spending. increased of to to its increase dollar a in growth X.X% EBITDA same even while netXphone's increase being SG&A Mexico disciplined its in year-over-year adjusted XX% margins revenue line to netXphone sales example, period. an X% decreased As top markets, $X.X year-over-year XX% in pesos, achieved but X.X%

on flows in profitability working each pricing efficiency. increase, increase quarters by and As and bring this over reach to diligently we generated the Money in particularly segment maximize channel from The of profit, shifting a the has Traditional slightly. our gross our focus QX, NRS even achieve million performed, in our EBITDA and digital our $XX more business our greater have and well as payments segment. mix increased year-over-year strategies, from decreased and for CapEx corridor geographical BOSS to implementing netXphone operations Adjusted sales mix have continued in our Communications last X reflects to XX% cash new been pleased particularly while costs

our to continuing for market profit out consistent IDT voice results, decline. ILD shout special wholesale notwithstanding carrier gross Global team to secular the deliver industry-wide A

Consolidated to expect million, on adjusted $XX record that Mindful was expectations the million EBITDA now it has bringing we another our adjusted in obtained growth first a $XX quarter in generate much million. to first year, EBITDA record we for XX% of $XX approximately half. segments in of our EBITDA total in on the year half the second of fiscal as put the adjusted the fiscal EBITDA outperformed in least our IDT is second half the the of at to deliver adjusted track 'XX, top 'XX. fiscal To each way,

Although exceeded Christmas Day weekly for new did even but transaction December. in as and from week by expansion slowdown At business compared Money our healthy. volume our across delivered we independent any the to potential yesterday, second surpassed BOSS meaningful the January, remains history, that Mother's customers remittance robust X.X% indicating watchful highest last of sales policies, retailer volume past impacts transaction At we year. immigration to February, week date, NRS, we federal its a this increased not transaction volume week's remain X% seen we businesses. not achieve at last our year-over-year Last same-store only February of activity also in disclosed total increased BOSS have retailers week, in BOSS and the revenue Money, only Money for

policies if immigration that have may As potential NRS the the our new such, federal businesses. impact, we remain any, cautiously and BOSS optimistic about on

cash from our Turning sheet operations. flow now to balance and our

disbursements You levels same ago. this million operating out want weekend significantly. our course Money typically quarter generated changes a the year million order the that of I due any are the the QX, over to payout remittances make that during week will cash in wallet of point global working the customer fund to payout in networks X exclusive partners BOSS our compared levels fluctuate $XX the our cash Money our prefund we that to day for of note to BOSS ahead. business, nature to only ends week deposits, with of capital because lowest in of enable we Fridays $X

weekend, routine million in prefund us disbursements. to to million $XX it unusual not a into Heading for $XX is

cash hand, other register any of typically the On highest day the balance of Wednesdays the week.

fiscal at this our January the of such, second a So at the was Friday. quarter for lowest the the last sheet And as quarter was balance its day past XX, in week. our close cash

I Wednesday, on QX. levels upcoming flow XX. third be such, that therefore, will April significantly higher end reporting we as generation for materially cash of will, expect operating quarter And Our

quarterly IDT's as able to Shmuel of our dividend, continued balance to robust dividend for expect for decision sheet strength we Board foreseeable the and the to the our to made each our increase future. a noted, generation, Given year and continue increase be expectation cash

continue to value In stockholders to approach our addition, return will through repurchasing to shares. we opportunistic

This shares XXX,XXX a our shares for million. level quarter, million, XX XXX,XXX to for over we bringing $XX of for XX total had $X.X ended repurchases, months January record the

for Q&A. Now back operator, to you

Operator

The Inigo Alonso is [Operator question ]. first Instructions] from [

Unknown Analyst

questions due start QX, a to neutral actually, NRS one with you looks for tendency remarks for year. you I a like Thank seasonal It businesses. the are of churn in the mentioned in of the another that time. X you the last terminals was questions. of week's I'll growth, still in have this was again guidance for X,XXX expanded X,XXX. report, NRS. results. or that and on provided results quarter was towards you great and also of trending wondering soft the you if thank yesterday's I That's main there this Earlier

it been an revenue. know your assume of The have that you elections to We ad I a was other seasonal been It adding good the have because maybe the the is screens it advertising and around network. a maybe was was that that had quarter. huge or like could really driver that sounds impact. one

on like revenue, I color ad would So get more too. to

medium overseas, International you there there's is not a to And lastly, stores, in question, it term? fragmented are go in NRS a planning many you When When convenience comes the on market. franchises. that more taking long-term

if that's wondering was in term. the I plans long your for medium, So

Samuel Jonas

questions, answer to Marcelo most of if in. your add will it have anything and add, I I'll

Marcelo Fischer

nice year-over-year. you're nice It also in a versus saw side a like during had was a of advertising just XX% real No, to say by grew that almost right, jump the data XX% year we performance I up That business. the about But ago. QX.

Samuel Jonas

Yes.

to it's the international in looking of the expansion, the very, not just dealing U.S. something with and and here we're we're would say that optimistic the that trajectory problems in I and growth terms that we have we're do very organically. U.S., about the Frankly, opportunity In busy the very

it and make in that would trained will need end to of of little likely units, So be had had I become I the seasoned through slightly internationally, start of over salespeople we're where the acquisition. in rest the up a bit I we unfortunately, come terms -- successful, number think terms think very it is that And on they I before of to if behind course we We've would have doing my recently. new will something lot of opinion. But the again, high think adding but they hopes be we year they an of a become units, successful. be we and but thought up that

Unknown Analyst

That's color. good really

ask netXphone. me about Let

constant it a in but basis we had a seat count netXphone, looks in So a while, nice addition had for revenue. really in also lowest we growth like

of lot industry. on trends a there's in So going this

We have MetaSwitch sale. the

have medium also have. saying customers going the that that they and support small We they are to not Avaya

wondering industry revenue higher the getting as dynamics. and I'm if a customers of of So trends you some seeing been these maybe have result

Samuel Jonas

know I with Yes. I don't would results dynamics. if tie mean industry I our specifically

I'll come Avaya deals said yet. slightly mean about but would have the seeing previously. a in So from say I aren't what separate seeing that pipeline deals I'm I what than of MetaSwitch already online just we business. have from I'm and that you good very signed larger been

half first expect better in do the that half netXphone. I the perform second they of to have than during so year on the the numbers And

headwind the currency, And doing business. anybody any a a than about as AI far else, for of the being going is business. do very, currency than job the maybe predict very do on we're do said, like I to it. been what I'm better that better I But As increase the that has can't I'm optimistic That very currencies ARPU. for traders optimistic netXphone about things to all definitely

with we increasing so no kinds I say, concerns. have the that anything, understand, terms talk So big a could can way If AI, internally frankly. sales and budgets in even both real we of boys lot development different our I'll about compete really, in of than investment who

Unknown Analyst

And last Okay. item around BOSS Money. the

has this like to you around did amount a has BOSS support you providing you're that maybe why so nice IDT holding hold you comfortable today, with of Money to the think are it really and cash criticism the you And is balance some What Money. BOSS why what's I feel working I need cash. color Money to that important was provided Money? it investors much working why You color BOSS been It requirements capital cash. understand has. or capital in the BOSS of run requirement wondering money those of sheet of

Samuel Jonas

answer question. that Marcelo let I'll

Marcelo Fischer

fund BOSS very capital a well. all the say businesses digital as balance Yes. have I we The Money other and of we to we working lease like the our are have, this sheet that strong payments able okay? that would business needs little differently, business fact

most our to cetera. they'll in balance obviously, return they avoid the And et of size to know, who financial costs competitors credit of capital from the lines are in incur the we doing not so, money that do working in by have able of institutions. you taking of resort course terms As funding this now sheet, space needs interest,

balance acquisitions, to building to attractive So balance our not continue support repurchases form finding to as have. shareholders that needs the dividends current we leverage will sheet, on reinvesting the cash in initiatives, deploy new capital towards as of the towards we sheet working that new long cash businesses, and businesses, or in do the value-accretive good we returning

full. it's around opportunity the our because -- Money that rather yet right of BOSS don't deploy have because we maintain balance found sheet other to not we So Money in (sic) BOSS business. we the the [ not cash the It's way ]

financing to generating the the we avoiding We are business, are working Money opportunistic on able BOSS of and are support returns the needs we because involved. capital investment higher thus our costs

Operator

question comes Corient. next with from William Vaughan Your

William Vaughan

Marcelo Congrats, and surrounds Shmuel BOSS on great question My quarter. another Money.

thinking in team and for focusing aggressive terms very lot and business. of and especially profitability Money is is we You trading in balance by possibly marketing. of My profits How trade-off a in more want about I mentioned does think prioritizing acquisition? short-term investing have always the this on being that's for question about does and not business profitable. bit that larger profitability business, that? foregoing and the competitors, the Are one with you profitability little to on the and profitability some customer BOSS more growth important, team be the long-term with competitor think we profits other growth specific a spending How and

Samuel Jonas

of a a not of it's and bit mean that to competitors think they're general. type like I batters the and insane probably say answer try think little fences of completely that fences in I'm a person money don't I'll I But would generally. singles get I to little home. a for you crazy. say I I'm too ours conservative spend who person the a swing in general. for that not of the crazy. And and the completely amounts to hit doubles are I that swing

think should you probably investment, I a spend that you return more. if on good get your

tomorrow are want acquisition say, both going And growth both to way. say, more growing own. -- million to or increase by think are to go make of And that. that and customers, our too of be this anything to see we double their I the a spend or we expanding retail and to a quarter say an you're that on going footprint I think invest on serve But starting that again, had that us investing we more, in it again, the could customer I mean, we we've I'll I are tiptoeing, by obviously over into we're in trying sense that not to, don't like each more. to not maybe I crazy so very think far. $X increase And run verticals profitable a those We verticals successful XX%. has business investing little trying one mess much I'll bit tried and irresponsible with we're by profitable very,

Marcelo Fischer

add, of per And of Money there most our just are now gross higher BOSS the the to digital total off invest transaction are the lot from And to raise at side. generating in plus part overwhelming to profitability terms the profit capital on profits In of gross happening it up is that that XX% retail and the trying heavily right, the is the from economics. And the unit improving are business. freeing majority transactions. us in is economics -- our thus lower. channel paid channel, a channel, which profit channel, And that by unit to significantly our time, of of terms we coming same has while the that retail in efforts digital really on about GP far of of continue

Samuel Jonas

Yes. sleeves expect nice help tricks like that supercharging we without up And the really some our we to spending. have growth really

William Vaughan

Awesome.

is second also BOSS on question Money. The

the color of little BOSS and expanded profitability more you into Money. vertical-by-vertical talk to all how Can I Venezuela, those far? Brazil, in initiatives terms a so going and for all You appreciate reasons the and verticals, Eritrea, business for bit it's more some are expanding about a

Samuel Jonas

we I to say to the it veracity is that like see is yet. really would reap market they're we The we generally have traction. scale I'll that of turn get it. say by of what thing is give calls something country in benefits to don't country in I say, said, if up heard have this like I Brazil they're into from country, to many I Yes. Venezuela expected even than a And mean, you much opportunity generally it better how to start the I've it's front doing. larger. update new at would going going mean, countries. we months time. -- to isn't you takes time a me on just have But the open like to numbers every live but need today, I you in And scale I -- every don't have one new the that as for particular well.

So say but it well for optimistic. how to it's will do, I'm hard me

Operator

Brandley. question from Eric next is The

Unknown Analyst

really little Just Could around ramp question Just you what kind thinking one share me. in changed decision for curious your to color give investor up? particular a more on repurchases allocation? the of back capital feedback

Samuel Jonas

know. don't I

get people, changes do mean, your all we like down I call that the have, Sometimes guys you on worn you almost investor and no, that by sheet. have cash honesty, much told mean, I on -- we're so balance why in every

out purchasing again, that and the that wake be to And shareholder-friendly You stock be And it when was we more buy. up company, to think thought the every there at we morning -- I guys I dividend try least to need and in day. on. I so good a opportunity increasing are a

Operator

from [Operator Instructions] We coming have Vaughan. a William follow-up

William Vaughan

follow-up. a Just

would customers And NRS, growth trends So just you color terms seeing more and you add growth Any could opportunities? of verticals or be growth are geographically? in that on of types more NRS opportunities helpful. on specifically or any seeing you're any

Samuel Jonas

like there's general, like launched like you, that, these and that directly you be part it's next of our it growth. ones we're platforms like into update get other of the -- retailers. over particularly integrated the the to them, all necessarily across accurate really think call of I have can't any the because We -- have that coming excited DoorDash that say, cumbersome couple today, into weeks. huge cetera. of all you through I'm inventory delivery et not my a would the don't POS, mean, I that's And platforms we those pricing for growth when I projects just and mean success business I'll isn't I like going changes seeing about. online service pet complicated, -- one for on delivery in own, I seeing I channels.

You're like driver not by I disconnected sure sorts when it not of mean arriving, the sure all the the you're issues from is there's was -- POS. when delivery being

continue business. QSR to I'm excited about excited I be So very our very about that.

to shelves. make I a thing with be have integrations going keep ship sure correct their to help think is the we're automatically stores doing that orders like inventory companies will huge the that liquor they on

there's So on that things are are I that different of think exciting. a going lot

we others. Some fast have off not a separate cash taking had of delivery sort launched like new There's doing almost and expect machine revenue automatic the thought. opportunity. Those have are other But I than like I again, -- every these Paypod. SaaS And all I much through flown tremendously the LottoShield shelf there's as nowadays. success ones them We that of mean, -- like the store X numbers. tremendous to more features. like called with as again, needs think of grow lots again,

Operator

Inigo Alonso. have Instructions] from follow-up [Operator a We

Unknown Analyst

Yes.

Just a NRS. follow-up on

You talking the adding you locations. your are the anytime adding a on disclosing have to screens planning KPI account about different and as Are metrics? soon you this on that been

Samuel Jonas

I you of with. trying explain -- to mean, little no, like it's terms mean, a in we you what -- better. accounts do can don't business again, are gather? But don't usually which I we disclose Maybe I

Marcelo Fischer

revenue generated of our those once Domino's a that's as how third only, we'll large going likely KPI, gets, to -- parties. separate of are could ] so screens calculate start start by together the you going we and that think that [ okay, amount easily those those to I POS customers So right? most not depending track showing happening, be have advertising things become count to it start more that advertising for the include obviously with are because material, number customers

Unknown Analyst

is Canada. like screens there million than pretty to The or thinking companies just $XX There's in portfolio. be having your traded trying out I'm there hidden could another gem publicly gather, a in What making big. this out from feels it year potential of more Yes. screens having

wondering I'm scale could this that if far. So

that's why... So

Samuel Jonas

I you'll it and probably when we'll -- don't know have it I you Well, then to it starts get see by out. mean, there, be breaking

third-party So more I'll them. front ones to with the our we talk it, call optimistic on But and in of and advertising what again, expand revenue in the have that -- the like we we're a share about own are about come have stores, future. don't but obviously, to it doing we'll case

Unknown Analyst

as Just benchmark, the added of of a number type was this what screens quarter? that

Samuel Jonas

numbers I quarter have added front of me. screens. in were X,XXX this know another don't I the that that we ordered just

I'm So were put -- but not quarter. how XXX% this actually on many sure

Operator

there session this our conference no attending As concludes presentation. Thank call. are more questions, question-and-answer for and today's you

You may now disconnect.

IDT (IDT) 6 Mar 252025 Q2 Earnings call transcript